Mantra (OM) Price Rose for Three Consecutive Days, Becoming One of the Best-Performing Cryptocurrencies

Mantra (OM) token rose to $4, slightly above the lowest level this week. This rebound pushed the token's market cap to over $3.8 billion.

Mantra price (CRYPTO: OM) enjoyed a three-day rally, emerging as one of the few cryptocurrencies to post gains on Monday as the majority experienced a downturn.

The token price rose to $4, slightly higher than the lowest level reached during the week. This rebound pushed the market cap to over $3.8 billion.

The rally occurred despite a drop in the staking yield to 15.4%. This marks a decline of over 12% in the last 24 hours, according to data from StakingRewards. The drop occurred despite a rise in the staking market cap of over 5% to $2.4 billion.

However, Mantra still offers one of the highest staking rewards in the crypto industry. For example, Polygon offers a yield of 5.6%, while Ethereum (CRYPTO: ETH) and Solana (CRYPTO: SOL) offer yields of 3.2% and 6%, respectively.

What is Staking?

Staking involves delegating tokens to aid in securing a network, and yields are usually derived from the fees earned by the network, which are distributed monthly.

The high staking yield has contributed to Mantra emerging as one of the best-performing cryptocurrencies this year, with a price increase of over 7,200% from its lowest point.

The rally intensified recently following the launch of MantraChain, a layer-1 network for building Real World Asset (RWA) tokenization products.

MantraChain aims to become the primary blockchain for developers in the rapidly growing tokenization sector. According to the developers, the chain addresses the blockchain trilemma of decentralization, security, and scalability by utilizing Cosmos SDK, one of the most widely used frameworks in the crypto industry.

The tokenization industry has witnessed substantial growth in recent years. For example, Ondo Finance (CRYPTO: ONDO), a leading tokenization project, has seen over $600 million in assets.

Other tokenized exchange-traded funds (ETFs), such as BlackRock's BUIDL and Franklin Templeton's FOBXX, have a combined total of over $1 billion in assets.

A Big Move Coming for Mantra Price

A glance at the daily chart reveals that OM price has been undergoing a consolidation phase in recent weeks after its vertical rally in November.

This consolidation forms a part of a bullish pennant chart pattern, which is a widely recognized continuation signal. The pattern consists of a long vertical line followed by a symmetrical triangle.

Typically, assets experience strong breakouts once the triangle converges at its apex.

If the pattern holds, we can expect a rebound in OM price, with an initial target of the year-to-date high at $4.5. A move above this level could pave the way for further gains, potentially pushing the price to the next psychological level of $5. However, a slip below the support level at $3.5 would invalidate the bullish outlook.